6 INDUSTRY NEWS
Councils to get strengthened powers to tackle empty homes
Councils across England are to be given powers to charge greater Council Tax premiums on homes left empty for many years, following an amendment to a Government bill. Introduced in March, the legislation originally contained provision for councils to double the rate of tax on properties that had been empty for two years or more. The Government is reportedly taking this a step further, and introducing an amendment that would allow councils to triple the council tax on homes left empty for five to 10 years, and quadruple it on those empty for more than a decade.
Homes which have been empty for between two and five years would still be subject to the Council Tax Bill being doubled under the proposal.
It is hoped that councils will be able to use the funds from the premiums to keep other Council Tax levels down. Secretary of State for Housing, Communities and Local Government, James Brokenshire commented on the release: “We’re giving councils extra flexi- bility to increase bills and incentivise owners to bring long-standing empty homes back into use.
“By equipping councils with the right tools to get on with the job, we could potentially provide thousands more families with a place to call home.” The Government has also announced
that it will publish revised guidance for councils on the use of premiums. This will also reportedly take into account issues relating to low-demand areas and ensure it does not hinder complex regenerations.
There has been a 1.1 million increase in households occupied by someone aged over 65 and over in the last decade, according the latest English Housing Survey, with many over 75s living in poor quality housing. This 20 per cent rise compares to an increase of 61,000 (1.5 per cent) in householders aged 16-34 since 2008.
The survey has also shown a steady
upturn in the number of older people renting privately, with 414,000 (6.3 per cent) of over 65s renting privately compared to 257,000 (4.7 per cent) a decade ago, an increase of 61 per cent. This is mirrored by a drop in the number of older people renting in the social sector, falling from 1.12 million (20 per cent) to just over a million today (16 per cent).
While there have been reductions since
2008 in the number of homes that don’t meet Decent Homes standards, more than a fifth of homes in which the oldest person is 75 or older do not meet the standard. 11.8 per cent of over-75s have Category 1 hazards (ones that pose a serious threat to health or safety), and 6.3 per cent of over- 75s’ homes have excess cold, with 12.7 per cent without boilers.
In the private rented sector, 35.9 per cent
of over-65s’ households are considered ‘poor housing’ (a home that has serious damp or mould, is ‘non-Decent’, or has substantial disrepair). 47 per cent of the homes in which over-75s live that are in disrepair would could nothing to repair, and 35.6 per cent would cost less than £1 per 20 square metres.
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More than one in five homes with elderly residents not up to scratch
Government is likely to miss its own annual building target, survey says
The majority of housebuilders (86 per cent) believe the construction of 250,000 additional homes a year is the maximum achievable amount by 2022, according to the Knight Frank annual Housebuilding report. This is 50,000 short of the Government’s target.
Only 1 per cent of respondents, which includes more than 100 developers that account for almost three-quarters of all newly-built homes each year, think surpass- ing 300,000 additional homes each year is impossible by 2022.
When asked about the barriers to speeding up development, respondents identified planning as the biggest hurdle, with 39 per cent identifying it as the top issue, although the proportion identifying the planning system as a hurdle has fallen since last year. Looking ahead, 61 per cent plan to increase the number of homes they build during the next 12 months. However, this is split between large builders and SMEs, with 92 per cent of the former planning to increase construction starts this year, and 57 per cent of the latter intending to decrease activity or leave output unchanged. 46 per cent of respondents said that ending the Help to Buy scheme in 2021 would have a negative impact on the supply of homes they were able to deliver. Despite this, two-thirds said the scheme should end, although these were split between 50 per cent calling for a tapered withdrawal of the scheme, 14 per cent saying it should end completely at some point in 2021, and 36 per cent believing the scheme should continue indefinitely.
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